Major cryptocurrency exchanges in South Korea are accelerating the promotion and expansion of trading in USD Peg stablecoins, amid the continued sharp depreciation of the won against the greenback.
According to market data, the volume of USD Peg stablecoins has increased by approximately 62% since the beginning of the year, coinciding with the Won-USD exchange rate surpassing 1,480, a level XEM sensitive to domestic investor sentiment. This development shows that stablecoins are increasingly being used as a hedge against exchange rate risks, in addition to Vai in trading within the crypto ecosystem.
Exchanges are offering great deals on USD stablecoins.
In response to increasing demand, many domestic exchanges have quickly launched incentive programs for stablecoin trading. Korbit and Coinone have respectively announced USDC trading campaigns, with weekly reward funds of up to 25,000 USDC to attract liquidation and new users.
Meanwhile, Upbit and Bithumb also expanded their stablecoin portfolios, including listing Ethereum's USDe, and implemented accompanying marketing activities and trading incentives.
Stablecoins become a short-term "safe haven".
Analysts believe that, amidst macroeconomic instability and prolonged exchange rate pressure, USD Peg stablecoins are Vai as a short-term safe haven for individual investors in South Korea. Converting from the won to stablecoins helps users preserve asset value while maintaining the flexibility to re-enter the crypto market or convert to fiat currency when needed.
This trend also reflects a shift from speculation to risk management, as stablecoins not only serve for transactions but also become tools for regulating Capital flows in the domestic market.
Policy pressure and oversight
However, the surge in stablecoin trading also poses challenges for South Korean regulators, particularly regarding cross-border Capital flows and financial stability. Authorities have repeatedly emphasized the need for close monitoring of stablecoin transactions amid volatile exchange rates.
